Internal Audit Vancouver Public Library Financial Statement 2013

March 31, 2014
Audit of Vancouver Public Library Financial Statement
At the request of the Board of the Vancouver Public Library (VPL), we have reviewed the
statement of financial position as at December 31, 2013 and the statements of operations,
change in net financial assets and cash flows and notes to the financial statements for the
period then ended. This review does not constitute an independent audit or review
engagement, and is not designed to detect fraud. Accordingly, there should be no such
reliance.
The financial information presented in the financial statements is the responsibility of the
management of VPL. The preparation of periodic financial statements necessarily includes
some amounts, which are based on the best estimates and judgment of management with
respect to future financial transactions.
We have performed the following procedures with respect to the financial information
presented:
• Agreed the financial information to the records and accounts in the general ledger of the
City of Vancouver (the City);
• Reviewed the working papers prepared by the Director of Corporate Services for VPL for any
reclassifications;
• Discussed and analyzed the financial information for reasonableness and consistency with
Corporate accounting policies;
• Performed variance analysis based on the Council approved budgets and obtained
explanations from VPL management where appropriate;
• Inquired as to the accounting, budget and other internal controls that provide reasonable
assurance that transactions are properly authorized and accurately recorded, and that the
assets of VPL are properly safeguarded and accounted for thereby maintaining the integrity
of financial records;
• Made inquiries and received written representation from the Director of Corporate Services
of VPL to identify any deviations from accounting policies and procedures that would affect
the integrity of the financial statements.
Based on the results of the above procedures, we found the financial statements were
prepared, in all material respects in accordance with Public Sector Accounting (PSA) Standards
and consistently with the City’s corporate accounting policies and general ledger.
Submitted by:
_______________________________
Tony Hui, CPA, CA, CRMA
Chief of Internal Audit
2013 STATEMENT OF FINANCIAL INFORMATION

TABLE OF CONTENTS
Statement of Financial Information Approval 1
Management Report 2
Library Board Members 3
Statement of Financial Position 4
Statement of Operations 5
Statement of Changes in Net Financial Assets 6
Statement of Cash Flows 7
Notes to Financial Statements 8
Schedule of Remuneration and Expenses 13
Schedule of Payments for the Provision of Goods and Services 16
Schedule of Debts 18
Schedule of Guarantees and Indemnity Payments 18
2013 STATEMENT OF FINANCIAL INFORMATION

VANCOUVER PUBLIC LIBRARY
STATEMENT OF FINANCIAL INFORMATION APPROVAL
The undersigned represents the Board of the Vancouver Public Library and confirms that
the Board of the Vancouver Public Library has received and approved, at its meeting of
April 23, 2014, all the unaudited statements and schedules included in this Statement of
Financial Information, produced under the Financial Information Act.
_______________________________________
Mary Lynn Baum, Chair
Vancouver Public Library Board
April 23, 2014
2013 FINANCIAL INFORMATION Page 1

MANAGEMENT REPORT
The unaudited Financial Statements contained in the Statement of Financial Information

under the Financial Information Act have been prepared by management in
accordance with the accounting principles in Note 1, and the integrity and objectivity
of these statements are management’s responsibility. Management is also responsible
for all the statements and schedules, and for ensuring that this information is consistent,
where appropriate, with information contained in the financial statements. The
unaudited financial statements necessarily include some amounts, which are based on
the best estimates and judgments of management.
Management is also responsible for implementing and maintaining a system of internal

controls to provide reasonable assurance that reliable financial information is produced.
The Library Board is a policy setting Board and assigns to management the responsibility
for day-to-day operations. The Library Board is responsible for assessing the
management, systems and practices.
The Internal Audit Division of the City of Vancouver assists the Vancouver Public Library
Board and management in assessing the internal control environment and making
observations and recommendations on the effectiveness of management systems and
processes.
The unaudited financial statements have been reviewed by the Internal Audit Division of
the City of Vancouver. Internal Audit has reported to the Vancouver Public Library
Board on the scope and results of the review.
_______________________________________
Sandra Singh, Chief Librarian
Vancouver Public Library
_______________________________________
Eric Smith CA, Director of Corporate Services
Vancouver Public Library
April 23, 2014

Current Vancouver Public Library Board
C. Barnes – Board of Parks and Recreation Representative

M. L. Baum - Chair
C. Brooks – Vice Chair
A. Chan – Vice Chair
J. Chan
G. Chow
H. Deal – Council Liaison
K. Epstein
C. Evans
M. Lombardi – School Board Representative
G. Ross
J. Schaub
J. Swift
Secretary and Chief Librarian – S. Singh

Statement of Financial Position
(unaudited)
As at December 31
2013 2012
FINANCIAL ASSETS
Accounts receivable and accrued interest $ 173,119 $ 171,928
Due from the City of Vancouver 5,823,480 6,748,071
5,996,599 6,919,999
LIABILITIES
Accounts payable and accrued liabilities $ 2,083,842 $ 2,606,160

Deferred income (Note 2) 153,641 151,820
2,237,483 2,757,980
NET FINANCIAL ASSETS 3,759,116 4,162,019
NON-FINANCIAL ASSETS
Inventory 118,314 144,522
Prepaid expenses 339,498 332,899
Tangible capital assets (note 6) 19,257,200 20,376,900
19,715,012 20,854,321
NET ASSETS $ 23,474,128 $ 25,016,340
ACCUMULATED SURPLUS
Reserves (Note 3) 6,082,928 6,517,440
Tangible capital assets 19,257,200 20,376,900
Deferred payroll costs (Note 4) ( 1,866,000) ( 1,878,000)
$ 23,474,128 $ 25,016,340
See accompanying Notes to Financial Statements

Long term debt (Note 1 (e))
Contingencies and commitments (Note 5)

Statement of Operations
(unaudited)
Years Ended December 31
2013
Budget 2013 2012
(version 4)*
REVENUES
City of Vancouv er $ 38,938,500 $ 39,180,750 $ 38,955,000
Other fees and recov eries 2,616,200 2,714,717 2,750,169
Other grants - 40,841 120,380
Prov incial Gov ernment 1,285,300 1,347,742 1,344,301
Inv estment income - 109,631 120,590
Interlink reciprocal serv ices 100,000 114,740 100,000
Charitable donations and bequests 377,900 219,021 168,711
43,317,900 43,727,442 43,559,151
EXPENDIT URES
Amortization 3,477,400 3,551,000

Books and materials 4,363,200 1,439,906 1,700,846
Building and equipment rental 1,185,800 1,118,856 1,150,760
Interlink operating costs 140,000 128,894 136,174
Loss on disposal of tangible capital assets 1,447,500 2,239,200
Maintenance 793,400 662,817 587,739
Other 2,587,800 2,745,912 2,077,934
S alaries and benefits 33,891,500 34,017,874 33,415,328
Utilities 352,400 364,495 341,889
43,314,100 45,403,654 45,200,870
ANNUAL SURPLUS (DEFICIT ) $ 3,800 (1,676,212) (1,641,719)
OPENING ACCUMULAT ED SURPLUS 25,016,340 24,521,859
Transfer from City capital 134,000 2,136,200
ENDING ACCUMULAT ED SURPLUS $ 23,474,128 $ 25,016,340
S ee accompanying Notes to Financial S tatements.
* Version 4 is the orginal budget approved by Vancouver City Council (excludes the 2013 w age provision)

Statement of Changes in Net Financial Assets
(unaudited)
2013 2012
Annual surplus (deficit) $ (1,676,212) $ (1,641,719)
Acquisition of tangible capital assets (3,822,200) (5,683,700)

Amortization of tangible capital assets 3,477,400 3,551,000
Proceeds on disposal of tangible capital assets 17,000 -
1,119,700 106,500
Change in inventory and prepaids 19,609 406,695

Transfer from Capital for tangible capital assets 134,000 2,136,200
Change in net financial assets (402,903) 1,007,676
Net financial assets at beginning of year 4,162,019 3,154,343
Net financial assets at end of year $ 3,759,116 $ 4,162,019
See accompanying Notes to Financial Statements.

Statement of Cash Flows
(unaudited)
2013 2012
CASH PROVIDED BY (USED IN):

Operating Transactions
Annual surplus (deficit) $ (1,676,212) $ (1,641,719)
Items not incolving cash
Amortization 3,477,400 3,551,000
Transfer from capital 134,000 2,136,200
Proceeds on disposal of tangible capital assets 17,000 -
Change in non-cash items
Decrease (increase) in inventory 26,208 18,729
Decrease (increase) in prepaids (6,599) 387,966
Decrease (increase) in accounts receivable (1,191) (24,110)
Decrease (increase) in due from City of Vancouver 924,591 (901,239)
Increase (decrease)in accounts payable (522,318) (198,509)
3,820,379 5,567,518
Financing Transactions
Increase (decrease) in deferred income 1,821 57,044
Capital Transactions
Acquisition of tangible capital assets (3,822,200) (5,683,700)
Investing
Sale (Purchase) of investments - 59,138
NET INCREASE (DECREASE) IN CASH - -
Cash at beginning of year - -
Cash at end of year $ - $ -
See accompanying Notes to Financial Statements.

NOTES TO FINANCIAL STATEMENTS
Year Ended December 31, 2013
The Vancouver Public Library Board (Library) is established under the Library Act of British Columbia and is a
registered charity under the Income Tax Act. Its principal activity is the operation of public libraries in the City
of Vancouver (City).
1. SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of Presentation

The financial statements of the Library have been prepared, in all material respects, in
accordance with generally accepted accounting principles for local governments as
recommended by the Public Sector Accounting Board (PSAB) of the Canadian Institute of
Chartered Accountants (CICA).
(b) Basis of Accounting

(i) Revenues, with the exception of overdue book fines and lost book charges, are recorded in
the period in which the transactions or events that give rise to the revenues occur. Amounts
received in advance of services rendered are considered deferred income until the Library
discharges the obligations that led to the collection of funds.
(ii) Overdue book fine revenues and lost book charges are recorded on a cash basis.
(iii) Expenditures are recorded in the period in which the goods or services are acquired and a
liability is incurred or transfers are due.
(iv) Inventory of supplies and materials are valued at cost with allowances made for obsolete
stock. Cost is determined on a first in, first out basis.
(v) The preparation of financial statements requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities, the disclosure of
contingent assets and liabilities and the reported amounts of revenues and expenditures
during the reporting period. Actual results will depend on future economic events and could
differ from the estimates. Adjustments, if any, will be reflected in the period of settlement or
upon a change in the estimate.
(vi) Effective January 1, 2010, the Library adopted the recommendations under Section PS 1200
of the CICA Public Sector Accounting Board Handbook for financial statement presentation.
(c) Tangible Capital Assets
The City owns the land, buildings, leasehold improvements, and vehicles used by the Library.
These assets are reported in the City’s Consolidated Statement of Financial Position. Books and
materials and furniture and equipment are owned by the Library and are recorded in these
statements. These capital assets are recorded at cost. Amortization is recorded on a straight
line basis over the useful lives of the assets as follows:
Collections 10 years
Furniture and equipment 15 years
Technology 5 years

NOTES TO FINANCIAL STATEMENTS continued
Note 1 (continued)
(d) Reserves
Reserves are established at the discretion of the Library Board with the approval of City
Council for future operating and capital expenditures. The reserves are held by the City.
(e) Long term debt
The City is responsible for all debt associated with the Library. The debt is reported in the City’s
Consolidated Statement of Financial Position and principal and interest payments are reported
in the City’s Consolidated Statement of Financial Activities.
(f) Pension Plan and Deferred Payroll Liabilities
The Library and its employees participate in a Municipal Pension Plan. The Municipal Pension is
a multi-employer contributory defined benefit pension plan. Payments in the year are
expensed.
Employees are entitled to earned benefits related to non-vested accumulating sick leave, sick
leave gratuity and vacation entitlements at retirement. Employees may also defer current
vacation entitlements. The cost of post-employment benefits is actuarially determined based
on service provided, a best estimate of retirement ages, and expected future salary and wage
increases. The liability under these benefit plans is accrued based on projected benefits as the
employees render service necessary to earn the future benefits.
As well, certain employees are entitled to income continuation benefits under long term
disability plans. The Library recognizes a liability and expense for these post-employment
benefits in the period when the event occurs that obligates the Library to provide the benefit.
2. DEFERRED INCOME
Amounts will be recognized as income in the year the related service is provided.
2012 2013
Advanced receipts $151,820 $ 153,641
3. RESERVES
These amounts are set aside by the Library Board with the approval of City Council for specific
purposes.
Change
2012 During Year 2013
Grants and Donation $ 4,073,265 $ (185,348) $ 3,887,917
Other 1,242,572 39,836 1,282,408
Equipment Replacement 1,201,603 (289,000) 912,603
$ 6,517,440 $ (434,512) $ 6,082,928

4. DEFERRED PAYROLL COSTS
The liabilities reported in the 2013 financial statements are based on an actuarial valuation as at
December 31, 2013 using the following valuation assumptions:
2012 2013
Discount rate 4.25% 4.25%

Inflation rate 3.00% 3.00%
Rate of compensation increase 1.45% to 4.00% 1.45% to 4.00%
Employee benefit liabilities as at December 31 are as follows;
2012 2013
Sick leave gratuity $ 389,000 $ 376,000

Deferred Vacation 685,000 703,000
Non-vested accumulating sick leave 317,000 297,000
Other post employment benefits 259,000 252,000
1,650,000 1,628,000
Unamortized actuarial gain 228,000 238,000
Liabilities to be funded from future revenues $ 1,878,000 $1,866,000
The continuity of the Library’s employee benefit liabilities are as follows:
2012 2013
Balance, beginning of year $2,574,567 $1,878,000

Current service cost 162,000 243,000
Interest cost 97,000 72,000
Amortization of Actuarial gain (327,567) (27,000)
Plan amendment (228,000) -
Actual benefits paid (400,000) (300,000)
Balance, end of year $1,878,000 $1,866,000

5. CONTINGENCIES AND COMMITMENTS
(a) Municipal Pension Plan
The Vancouver Public Library and its employees contribute to the Municipal Pension Plan (the
Plan), a jointly trusteed pension plan. The Board of Trustees, representing plan members and
employers, is responsible for overseeing the management of the Plan, including investment of
the assets and administration of benefits. The Plan is a multi-employer contributory pension plan.
Basic pension benefits provided are based on a formula. The Plan has about 179,000 active
members and approximately 71,000 retired members. Active members include approximately
36,000 contributors from local governments.
The most recent actuarial valuation as at December 31, 2012 indicated a $1,370 million funding
deficit for basic pension benefits. The next valuation will be as at December 31, 2015 with results
available in 2016. Employers participating in the Plan record their pension expense as the
amount of employer contributions made during the fiscal year (defined contribution pension
plan accounting). This is because the Plan records accrued liabilities and accrued assets for the
Plan in aggregate with the result that there is no consistent and reliable basis for allocating the
obligation, assets and costs to individual employers participating in the Plan,
The Library paid $2,329,600 (2012 - $2,246,200) for employer contributions to the Plan in 2013.
Employees contributed $2,071,300 (2012- $2,002,400) in 2013.
(b) Contingent Legal Liabilities

As at December 31, 2013, there were no legal claims pending against the Library.
(c) Operating Leases
The Library is committed to operating leases for buildings and equipment. Minimum future lease
payments are as follows:
2014 1,028,700
2015 1,096,600
2016 1,000,800
2017 730,600
2018 737,400

6. TANGIBLE CAPITAL ASSETS
Cost 2012 Additions Disposals 2013

Furniture and Equipment $12,607,700 $361,000 $ (674,200) $12,294,500
Technology 5,186,200 228,500 (233,700) 5,181,000
Collections 43,997,800 3,232,700 (3,270,800) 43,959,700
$61,791,700 $3,822,200 $(4,178,700) $61,435,200
Accumulated Amortization 2012 Amortization Disposals 2013

Furniture and Equipment $9,510,500 $314,000 $ (547,200) $9,277,300
Technology 3,421,600 561,300 (233,700) 3,749,200
Collections 28,482,700 2,602,100 (1,933,300) 29,151,500
$41,414,800 $3,477,400 $(2,714,200) $42,178,000
Net Book value
Furniture and Equipment $3,097,200 $3,017,200
Technology 1,764,600 1,431,800
Collections 15,515,100 14,808,200
$20,376,900 $19,257,200

SCHEDULE OF REMUNERATION AND EXPENSES (A)
Members of the Library

Board Expenses
Brooks, C. Vice Chair $805

Chan, A 474
Epstein, K. 252
Evans, C. Chair 84
Millward, D 19
Total $1,634

SCHEDULE OF REMUNERATION AND EXPENSES (B)
Employees' remuneration greater than $75,000 and expenses
Expenses Remuneration
Baron, D $418 $82,334

Barrington, S 425 90,886
Bliss, R 169 112,899
Burma, RL 740 78,416
Cahill, K 792 78,472
Campbell, I - 83,902
Chan, K 2,274 85,927
Chen, G 288 75,957
Chou, M 479 76,068
Cribdon, G L. - 81,357
Curry, L 536 83,113
Davies, B 586 94,208
De Castell, C 6,189 118,342
Dickson, E 452 83,107
Douglas, J 1,825 75,958
Elmslie, K 578 111,512
Esparo, D 626 111,077
Everall, S 635 111,947
Flaherty, S 878 135,234
Fortin, A - 86,090
Fu, H 3,101 83,558
Guilmant-Smith, G 207 78,717
Guinn, D 876 129,230
Haaf, A 28 96,129
Hall, P 289 82,035
Hama, G - 79,707
Horne, J 2,466 158,677
Iannacone, J 1,865 96,708
Ibey, M 1,552 112,314
Johal, S 285 82,664
Koep, M 685 79,646
Langley, M 138 82,177
Lightfoot, H - 76,484
Ma, N - 75,318
Masoumi, A - 76,641
McGee, M - 82,953

SCHEDULE OF REMUNERATION AND EXPENSES (B)
McNeilly, E J - 113,604
Middlemass, C 116 110,671
Mildenberger, N 452 86,185
O’Coffey, T 2,223 75,003
Olsen, A 4,091 107,032
O'Shea, A 2,148 93,475
Payne, K 1,516 100,217
Preston, P 75 82,526
Quigley, T - 94,963
Richmond, S 670 89,765
Russell, K - 76,584
Safarian, L 441 76,028
Scudder, N - 76,084
Singh, S 9,398 189,971
Smith, E 4,609 145,752
Tolentino, C 960 78,649
Tomkins, J 96 83,901
Tosa, Y 178 89,006
Uldall-Ekman, M 2,223 79,904
Van Kemenade, I 2,092 129,803
Voth, V - 81,844
Wang, S 425 76,322
Watson, S C 123 87,093
Wilde, M - 75,045
Wood, D 3,426 129,051
Wotherspoon, P - 77,686
Employees' remuneration less than $75,000 23,975,589
Total remuneration 29,811,517
Employer share of EI, CPP, and other benefits (*) 5,204,458
Accruals and amounts recorded in other accounts (998,101)
Total per financial statements $34,017,874
Note. Some of the remunerations numbers listed above include 2013 payments related to prior year’s frozen
vacation banks.
(*) Payments to the Receiver General are made directly by the City of Vancouver on behalf of the Library.
These payments are shown on this schedule at the standard rate allocated by the City of Vancouver, and not
on the Schedule of Payments for the Provision of Goods and Services.

SCHEDULE OF PAYMENTS FOR THE PROVISION OF GOODS AND SERVICES
Payments to Vendors with a cumulative total greater than or equal to $25,000

3M Canada Co. $181,862
Academic Bookbinding Co Ltd 42,311
Aquilini Properties LP 75,623
BC Hydro 144,587
BC Libraries Cooperative 324,060
Bibliocommons Inc. 30,404
Bridgeall Libraries Limited 27,051
Brink's Canada Limited 37,224
Brodart Canada Company 33,055
Cambridge University Press 32,818
CCH Canadian Limited 36,421
Champlain Square LP 165,666
Compugen Inc 480,161
Concord Security Corporation 192,587
CVS Midwest Tape 607,602
DA Architects + Planners 189,012
Ebsco canada Ltd. 300,526
Effective Data Solutions 25,256
Environics Analytics 33,201
First General Services 34,395
FortisBC Energy Inc 43,118
Gale Group 60,830
Great Courses 26,027
How To Video 34,289
Ingram (Electronic) 106,511
ITC Systems 104,368
Kidsbooks 142,237
Konica Minolta Business (leasing) 27,120
Konica Minolta Business Solutions 98,439
Librairie Monet 52,881
Library Bound Inc. (Elec) 263,711
Mainland Information Systems Ltd 156,047
Mal (Richmond) 38,396
Martello Property Services Inc 109,952
Newspapers Direct 53,437
Novell Canada 49,824

SCHEDULE OF PAYMENTS FOR THE PROVISION OF GOODS AND SERVICES
Oakridge Centre Vancouver 613,626

Oclc, Inc 100,759
OfficeMax Canada Grand & Toy 159,358
Openroad Communications 96,557
Overdrive 313,198
Pitneyworks 48,231
ProQuest LLC 143,578

Public Library Interlink 294,810
Raincoast Book Distribution Ltd. 42,775
Renaud-Bray 53,247
Roper Greyell 43,534
Securiguard Services Ltd 407,460
Sino United Pubplishing (Can) Ltd. 123,601
Swen Investment Ltd 169,762
Telus Communications (BC) Inc 26,672
Telus Services Inc 67,617
United Library Services Inc. 1,020,562
Vancouver Public Library Foundation 84,654
Whitehots Canadian Library Services 395,517
Workers' Compensation Board 124,572
World Book Educational Products 27,752
YWCA Vancouver 219,299
vendors > 25,000
8,938,150
vendors < 25,000

1,960,718
Sub total
$10,898,868
Capital asset purchases from Operating budget (3,688,200)

Amortization and loss on disposals 4,924,900
Amounts charged to City, capital accounts, GST/HST rebates,
Accruals, and Other (1,178,668)
Amounts charged by City departments 428,880
Total per statement of operations $11,385,780
Total expense per statement of operations $45,403,654
Less salaries and benefits per statement of operations (34,017,874)
Total non - salary and benefit expenses $11,385,780

SCHEDULE OF DEBTS AND SCHEDULE OF GUARANTEES AND INDEMNITY PAYMENTS
Schedule of Debts
A Schedule of Debts has not been prepared because the information required is disclosed in the Statement of
Financial Position and no addition information would be provided in the schedule.
Schedule of Guarantees and Indemnity Payments
The Vancouver Public Library has not given any guarantees or indemnities and a schedule would not provide
any information.

Internal Audit Vancouver Public Library Financial Statement 2013

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Internal Audit Vancouver Public Library Financial Statement 2013

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March 31, 2014

Audit of Vancouver Public Library Financial Statement

2013 STATEMENT OF FINANCIAL INFORMATION

Statement of Financial Information Approval 1

Library Board Members 3

Statement of Financial Position 4

Statement of Changes in Net Financial Assets 6

Statement of Cash Flows 7

Notes to Financial Statements 8

Schedule of Remuneration and Expenses 13

Schedule of Payments for the Provision of Goods and Services 16

Schedule of Guarantees and Indemnity Payments 18

2013 STATEMENT OF FINANCIAL INFORMATION

April 23, 2014

2013 FINANCIAL INFORMATION Page 1

The unaudited Financial Statements contained in the Statement of Financial Information

Management is also responsible for implementing and maintaining a system of internal

2013 FINANCIAL INFORMATION Page 6

C. Barnes – Board of Parks and Recreation Representative

2013 FINANCIAL INFORMATION Page 7

Accounts payable and accrued liabilities $ 2,083,842 $ 2,606,160

See accompanying Notes to Financial Statements

2013 FINANCIAL INFORMATION Page 8

43,317,900 43,727,442 43,559,151

Amortization 3,477,400 3,551,000

ANNUAL SURPLUS (DEFICIT ) $ 3,800 (1,676,212) (1,641,719)

OPENING ACCUMULAT ED SURPLUS 25,016,340 24,521,859

Transfer from City capital 134,000 2,136,200

ENDING ACCUMULAT ED SURPLUS $ 23,474,128 $ 25,016,340

S ee accompanying Notes to Financial S tatements.

2013 FINANCIAL INFORMATION Page 9

Annual surplus (deficit) $ (1,676,212) $ (1,641,719)

Acquisition of tangible capital assets (3,822,200) (5,683,700)

Change in inventory and prepaids 19,609 406,695

Change in net financial assets (402,903) 1,007,676

Net financial assets at beginning of year 4,162,019 3,154,343

Net financial assets at end of year $ 3,759,116 $ 4,162,019

See accompanying Notes to Financial Statements.

2013 FINANCIAL INFORMATION Page 10

CASH PROVIDED BY (USED IN):

NET INCREASE (DECREASE) IN CASH - -

Cash at beginning of year - -

Cash at end of year $ - $ -

See accompanying Notes to Financial Statements.

2013 FINANCIAL INFORMATION Page 11

1. SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of Presentation

(b) Basis of Accounting

(c) Tangible Capital Assets

2013 FINANCIAL INFORMATION Page 12

(e) Long term debt

(f) Pension Plan and Deferred Payroll Liabilities

$ 6,517,440 $ (434,512) $ 6,082,928

2013 FINANCIAL INFORMATION Page 13

4. DEFERRED PAYROLL COSTS

Discount rate 4.25% 4.25%

Employee benefit liabilities as at December 31 are as follows;

Sick leave gratuity $ 389,000 $ 376,000

Liabilities to be funded from future revenues $ 1,878,000 $1,866,000

The continuity of the Library’s employee benefit liabilities are as follows:

Balance, beginning of year $2,574,567 $1,878,000

2013 FINANCIAL INFORMATION Page 14

5. CONTINGENCIES AND COMMITMENTS

(a) Municipal Pension Plan